Industry ministry expresses concern over China's export curb

International Trade Relations Director General Kim Jong-cheol speaks in a meeting held in central Seoul on Sept. 14. [YONHAP]

Korea's industry ministry said Tuesday it has delivered concerns to China over Beijing's export curb on graphite that could potentially disrupt the supply chains of the global battery industry.

International Trade Relations Director General Kim Jong-cheol delivered the concerns to Beijing during the Pan-Yellow Sea Rim Economy and Technology Exchange Conference held in China's northeastern city of Dalian early this week, according to the Ministry of Trade, Industry and Energy.

The remark came after China announced earlier this month that it will require export permits for shipments of graphite, a key material used for rechargeable batteries, starting in December, in a move that could take a toll on Korean companies.

Kim pointed out that it is important that the two countries maintain a close partnership in the supply chain of batteries, noting that the latest restriction has raised concerns in the sector.

The director also emphasized that the supply chain should be maintained stably for mutual benefit, as the two countries' battery industries are closely intertwined, according to sources.

Korea is expected to become one of the major victims of the export curb, as LG Energy Solution and SK On operate battery production lines in China.

Yonhap